Stock Market Update -Jan 24th

Another bad week for the markets. We got the correction I expected as I wrote in last week's update, as more earnings reports were released, and as the government proposed stricter regulations for banks, and as the US Dollar rallied some more. This was the worst week for the DOW since the rally began last March.

Amid the carnage, these stocks were up last week: ISRG CREE
Also: VXX (tracks volatility)
And some favorite leveraged inverse ETFs: FAZ, QID, SMN, SRS


New unemployment claims were up, coming in at 482,000.
Four more banks were shutdown this week! (list).

Next week: Earnings season continues with reporting from AAPL, AMZN, MSFT, YHOO, F, CAT, JNJ, and PG among others. We also get a number of economic reports, as well as a Fed meeting, and the GDP report, so it will probably be a volatile week.

Market commentary:
A correction has begun and we could see the DOW break below 10,000 again. If the response to upcoming earnings is anything like the past two weeks, we could see more stocks take a tumble. Gold equities have been hit hard in the past two weeks as well, but may have more downside action before rallying again. Likewise for commodity and basic materials stocks.

Also, the market once again fooled a lot of traders who were short, this time with Treasury Bonds! Bonds rallied, but we could see another 'short' opportunity here around 119, and possibly even higher.

Commodities:
Oil prices continued to slide, closing the week just under $73 per barrel.
Natural Gas was up, closing around $5.80.
Gold prices fell, closing just under $1090, breaking under the $1100 mark again.
The US Dollar index was up, closing just under 78.50.
Bond prices rallied to $119 as stocks tumbled.

Biggest Three-Day Drop in Almost a Year
The Correction We've Been Waiting For?
China's GDP Up 10.7% in Fourth Quarter, But It's a Fragile Surge
Citigroup loss signals more trouble for commercial banks
Japan Airlines files for bankruptcy protection
More families relying on food stamps to feed their kids
Wal-Mart to cut 11,200 jobs at Sam's Club
New Leveraged Long Treasury ETFs from ProShares

Google sales rise 17%, beats Street - Jan. 21, 2010
Goldman Sachs Earns $4.79B, Trounces Estimates
BofA Posts $5.2 Billion Loss as It Repays Bailout
Starbucks Profit Triples as Customers Return to Stores
IBM Beats Wall Street Expectations With Stellar Report, Strong Guidance
The Outlook for Stocks, Gold and the Dollar

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